Protected Bankruptcy Exemptions

: Reese Baker & Associates

  Filed under: Filing bankruptcy

debtWhen you are filing for bankruptcy in Texas some of your property may be protected from those that that you owe money to. This property is listed on an exemption list. In Texas you have the choice of either using the federal exemptions or the State bankruptcy exemptions. What you want to be sure of is that you have an experienced Texas bankruptcy attorney that can guide you as to which of these lists will be best for you to use.

The exemption limits that you will see on the list pertain to the equity that you have in your property. For example if you have a car that is valued at $10,000 and you still owe $9,000 on it then the only equity you have in the vehicle is $1000.

What happens to this vehicle depends on the specific circumstances that you are in. Something else to consider as well is if you are going bankrupt with your spouse and you are filing your bankruptcy as a couple. You will each be able to claim a full set up exemptions unless there are specific circumstances surrounding this.

Going bankrupt does not automatically mean that you are going to lose all of your assets. At the same time it does not mean that all of your debts are going to be wiped clean, and that you will be able to keep everything you own as well. Every bankruptcy depends on the individual and their specific situation.